ISLAMABAD: The Federal Board of Revenue (FBR) has introduced significant changes to the Export Finance Scheme (EFS) to address concerns over misuse and improve its effectiveness.
On Friday, the FBR issued SRO301(I)/2025 to amend the Customs Rules, 2001, implementing several updates to the scheme. Notably, the Export Facilitation Scheme (EFS) 2021 has been withdrawn for iron and steel scrap importers.
In addition to this, the FBR has revised security requirements for accessing the EFS. Manufacturing-cum-exporters with a minimum export value of $20 million over the past two years will now be required to submit an indemnity bond and post-dated cheques (PDC).
For manufacturers-cum-exporters with exports below $20 million, the indemnity bond and PDC must match the average annual duties and taxes on input goods used in exports over the last two years. Additionally, a bank guarantee or revolving bank guarantee will be needed for any excess duties and taxes deferred or remitted.
The FBR has also announced that users with poor compliance histories, including pending recoveries or criminal proceedings, will have their authorisations immediately suspended pending further review. Non-compliance with reconciliation statements or stock audits will also lead to suspension.
Further changes under the revised procedure include a reduction in the input utilization period, authorization of input based on production capacity and input-output ratios, replacing insurance guarantees with bank guarantees, and new vendor facilitation controls.
The revised rules also introduce stricter monitoring of imported inputs to ensure they are used in the exported goods.
The input goods acquired under the scheme must now be utilized within nine months, with extensions available only in exceptional cases and subject to approval by a committee formed by the FBR. For exports against international tenders or to exempt projects or sectors in Pakistan, users will need to submit a declaration through the WeBOC system.
